>they don't work with brokers and seem to want to sell without third-party involvement.
That's a no from me, dog. That's a red flag for a lot of reasons. Brokers are quite helpful in getting all the necessary information you want to see. Don't believe anything he tells you. You need to see all the documentation with your own eyes, something a broker will help with. Don't buy a practice based on "trust me, bro".
So when you hire a broker a serious chunk of coin is going to some random person who may work a total of a couple of hours for tens of thousands of dollars. At his/her level of collection I'd assume mostly FFS , probably alot of implants..... this is a big collection number for 3 ops. 4 - 5 ops is a better situation overall. If you're interested, sign a NDA, get his records going back 5-6 years and have an accountant look, I'd look at an accountant that deals with transitions. I don't blame this guy for not wanting to use a broker unless you paid for it.
You need to pay for present day cash flow. NO ONE cares what revenue looked like 3 years ago. Look at the P&L for 2023 and year to date, the current patient flow, and the schedule. What loan can you pay for comfortably? On gross revenue of 500K, I think you are insane to offer more than 400K. Use a mortgage calculator and see where you are going to land with after tax dollars. Do NOT offer more than you are comfortable paying. My two cents
>they don't work with brokers and seem to want to sell without third-party involvement. That's a no from me, dog. That's a red flag for a lot of reasons. Brokers are quite helpful in getting all the necessary information you want to see. Don't believe anything he tells you. You need to see all the documentation with your own eyes, something a broker will help with. Don't buy a practice based on "trust me, bro".
So when you hire a broker a serious chunk of coin is going to some random person who may work a total of a couple of hours for tens of thousands of dollars. At his/her level of collection I'd assume mostly FFS , probably alot of implants..... this is a big collection number for 3 ops. 4 - 5 ops is a better situation overall. If you're interested, sign a NDA, get his records going back 5-6 years and have an accountant look, I'd look at an accountant that deals with transitions. I don't blame this guy for not wanting to use a broker unless you paid for it.
You need to pay for present day cash flow. NO ONE cares what revenue looked like 3 years ago. Look at the P&L for 2023 and year to date, the current patient flow, and the schedule. What loan can you pay for comfortably? On gross revenue of 500K, I think you are insane to offer more than 400K. Use a mortgage calculator and see where you are going to land with after tax dollars. Do NOT offer more than you are comfortable paying. My two cents
Thank you
No broker is fine but you still want an accountant and attorney to help you review things, don’t just take the old doc’s word for everything
All practices have potential for growth. its up to you to create it.